Form 8962 & Insurance Premium Deduction

Forum|Forum|2 years ago
March 5, 2024
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I'm trying to help someone with their return and they have to complete Form 8692. I've never dealt with this form and am having trouble reconciling amounts from this form with amounts flowing to the medical expenses deduction.

Quick facts - itemizing rather than taking the standard deduction. Verified amounts from form 1095-A. Amounts from Form 8962 are as follows:

Column A total is 5,559

Column B total is 5,536

Column C total is 3,240

Column D total is 2,296

Column E total is 2,296

Column F total is 3,828

They received an excess advance payment of 1,532 and only have to repay 1,500. So if I'm trying to determine the amount of their insurance premium deduction since they are itemizing, I would expect this amount to be the 3,240 amount...or either 3,240 less the 32 they do not have to repay (3,208).

The amount flowing within TurboTax for insurance premiums is 3,228. I have tried every sort of combination to understand the difference. Yes, it is only 12, but I feel like the deductible insurance premiums should be an explainable amount. I wondered if there was maybe some rounding in the monthly amount since the difference could be ~1 per month x 12 months = 12, but I'm not sure that is the case.

They are going to trust TurboTax, but I can't let it go and would like to know the discrepancy or how to compute the deductible insurance premium amount.

TurboTax Free Edition Online

Best answer by DMarkM1

Yes, the health insurance premiums deduction on Schedule A for premiums paid for Affordable Care Act insurance comes from the form 8962. The amount of premiums paid (Col A) in your example is 5559 minus the amount paid by premium tax credits (Col F) 3828 = 1731. Then add back the amount the taxpayer has to repay (1500) yields 3231. I imagine the figures for your columns are rounded from the actual monthly amounts on the form 1095A to account for the slight difference.

DMarkM1Answer

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rrutland78Author

@DMarkM1 rounding and also math on incorrect columns were the answer. Once I followed your math and rounded numbers, I matched Turbo Tax's number perfectly. Now I can move along!